BOE Keeps Rate at Record Low as Osborne Raises Forecasts

The Bank of England held its key interest rate at a record low in line with its forward guidance, as Chancellor of the Exchequer George Osborne said the economy is strengthening.

The Monetary Policy Committee led by Governor Mark Carney kept its benchmark rate at 0.5 percent, according to a statement in London today. The decision, forecast by all 48 economists in a Bloomberg News survey, comes a week after officials removed some incentives to mortgage lending, warding off a potential risk to financial stability that could have voided guidance.